Luxury Brand Pyramid: Tiers, Strategy & Brand Growth In 2025

While working with luxury fashion brands, you might be thinking about how to rank luxury brands….from which steps you must pass through to rank your brand—let’s learn in detail.

I’m a fashion designer (Rouba Saadeh) and have a fashion brand, Le Paradis Des Fous—-This luxury fashion brand falls in the ultra high category of a fashion pyramid. Want to learn about all other brands w.r.t the pyramid’s structure? Stay tuned!

The luxury brand pyramid categorizes luxury brands based on exclusivity, pricing, and brand perception. It consists of tiers ranging from accessible to absolute luxury, each defined by unique characteristics. 

This article explores the pyramid’s structure and how brands climb to higher levels through strategy and storytelling.

The luxury brand pyramid categorizes luxury brands based on their exclusivity, pricing, and brand perception. In this pyramid, the top tier covers Hermés and Chanel like ultra-luxury brands that are known for high price and limited availability.

Mid-tier luxury brands like Louis Vuitton and Bottega Veneta are somehow more accessible but still maintain their high quality and exclusivity. Entry-level luxury brands are the best option for those who want to taste the luxury at an affordable price. This pyramid structure helps brands to understand their position in the market.

Let’s learn the 5 status-wise tiers of luxury brands!

This tier covers several luxury brands like Hermès (Birkin bags), Graff, Bugatti, Patek Philippe….some focused traits of this tier are here:

  • Extremely limited supply
  • Custom-made or haute couture
  • Generational value
  • Often requires personal invitation to purchase

For ultra high net worth individuals, this is not just a luxury but a status legacy or a timeless prestige.

This tier covers Chanel, Louis Vuitton, Dior, and Gucci luxury brands—-High-end but slightly more accessible, Strong brand identity, Iconic products (e.g., LV bags, Dior dresses), still exclusive but seen in media more often are the common traits of this tier.

Status-conscious aspirants taste these luxury brands within reach.

This level caters to Michael Kors, Coach, Tory Burch, and Marc Jacobs luxury brands. These brands offer stylish, well-crafted pieces at reasonable prices. Key features without ultra-premium prices, like Premium quality at lower price points, widespread availability, and often entry-level luxury, are part of this luxury style.

This tier is the best choice for Middle-class individuals who value status but couldn’t manage their budget.

This tier covers Zara (limited collections), MAC Cosmetics, Victoria’s Secret, and Calvin Klein luxury brands and offers the key traits of Luxury-inspired branding with mass production, Affordable price, and Trend-focused products.

General public aspirants, especially younger consumers, are the target audience that wants to engage with fashion-forward trends without the high-end price tag.

Brands like Bath & Body Works, Nespresso, and The Body Shop make luxury feel personal, cozy, and accessible…..this tier provides features like feeling luxurious but is affordable, often used daily, and focuses on experience or self-care. Everyday consumers are the target audience for this level…..This tier has many consumers as everyone wants to take a dose of elegance in their routine life.

Luxury Brand Pyramid

Let’s learn how brands build a strong connection with customers and become a loved, powerful, and trusted connection in their industries.

The first step is to make people know and remember your brand. The logo, tagline, colors, and ads are the best way to recognize a brand quickly. When people can easily say, “Oh yes, I’ve seen this before!” — that means brand identity is working.

Once people know and remember your brand, the next step is what your brand is all about…..It includes two things: how the product works well and what kind of feeling or image the brand gives. People start to understand what the brand stands for and what kind of vibe it gives.

This step is about how customers feel and think about your brand—Usually, each brand wants people to taste it, like it, and remember it—-so this is the better option to serve well to people to make yourself proud. Good feelings and strong opinions help make the brand even stronger.

These feelings of the people help to move up your brand:

Do people think it’s high quality?

Do they feel excited or happy when they use it?

This is the highest step, where customer and brand become good friends. People don’t just like the brand; they love it, buy it again and again, and even tell others about it. They feel connected to it.

All these things help to move up your brand in the industry and leave a lasting impression on society.

The pyramid is too important in fashion marketing—-it helps to grow up step by step in the fashion market. It shows how to build a strong bond with customers — from the moment they see your brand for the first time to the point where they fall in love with it and stay loyal.

Fashion isn’t just about wearing well —- It’s about style, feeling, and identity …. And only a pyramid may help a brand to make a strong identification with style, feeling, or identity.
That’s why fashion brands need to be clear about:

  • Who they are (like their logo and look)
  • What they stand for (like being trendy, comfy, or eco-friendly)
  • How people feel when they wear their clothes
  • And how to make people come back again and again!

This pyramid helps brands go from being just a name to becoming a lifestyle choice. It helps fashion businesses stand out in a big crowd and make people say, “Yes, this is my favorite brand!”

In starting, new or small bands have to face many difficulties —- the biggest challenge is to advertise a brand properly. This takes a lot of time, effort, & hard work. They also need to show what makes them different and special compared to big, popular brands.

Building Trust is another big challenge —- As customers might feel unsure and hesitant while trying a new brand, this is an important talk, especially when we talk about fashion, in which people have a lot of care about style, identity, and feeling. So, building trust and creating a good reputation may take a lot of time. Consistency is the key to facing this challenge successfully. 

In short, new brands have to climb the pyramid one step at a time while managing limited budgets, tough competition, and the pressure to impress. But with the right strategy, even small brands can grow and win hearts 💖

Some factors are important in determining the brand’s position in the fashion pyramid.

  • Product quality
  • Pricing strategy
  • Brand image and style
  • Target audience
  • Customer experience
  • Marketing and advertising
  • Brand history and story
  • Packaging and presentation
  • Social media presence
  • Celebrity or influencer partnerships
  • Availability (exclusive or mass-market)
  • Innovation and design uniqueness

The luxury brand pyramid helps us see how fashion brands are placed from bottom to top — from affordable fashion to exclusive luxury. Every step of the pyramid shows how brands grow by improving their quality, image, price, and customer connection.

For new or growing brands, the pyramid is like a roadmap. It shows that with the right strategy, strong identity, and customer love, even a small brand can rise higher.

Whether it’s a designer like Rouba Saadeh or a global luxury house, this pyramid explains how brands win hearts and build loyal fans. 👑✨

Picture of Waqas Arif

Waqas Arif

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